Taxes

[mysterion]

Hi guys,

Just a quick question about taxes for dividends and interest payments.

Under which investment vehicles will dividends and interest payments in Singapore be taxable?

For example, dividends from equities, real estate investment trusts and business trusts, as well as interest payments from government bonds (SGS, HDB bonds), corporate bonds.

And will it be lumped into as income, to be paid as income tax depending on your income bracket?

[kazukirai]

For example, dividends from equities, real estate investment trusts and business trusts, as well as interest payments from government bonds (SGS, HDB bonds), corporate bonds.

And will it be lumped into as income, to be paid as income tax depending on your income bracket?

I believe it's called 'taxed at source' or 'one-tier tax' but basically it means you don't pay personal income tax on dividends or distributions from REITs and Biz Trust.

As for interest on coupons from bonds, I have no personal experience but my guess is they aren't taxed as well.

[Stocker]

Because tax dept has collected the corperate tax , and no more tax credit like sec 44 which abolised in years ago.

[mysterion]

Thanks for the clarification kazukirai and Stocker.

But what about dividends from foreign investment vehicles (e.g. US, UK equities, ETFs etc.)?

Will dividends be double-taxed i.e. once overseas and once more back in Singapore?

[Stocker]

Thanks for the clarification kazukirai and Stocker.

But what about dividends from foreign investment vehicles (e.g. US, UK equities, ETFs etc.)?

Will dividends be double-taxed i.e. once overseas and once more back in Singapore?

From what i know , it depends on whether we have double taxation agreement with them.